What happens to the price of Bitcoin (BTC)?

Earlier, last week, I analyzed how the summer time of the northern hemisphere is usually favorable to Bitcoin. Of course, with the exception of 2011-2012, when the entire market was bearish almost 2 for the year in a row, but for now let's not ignore it. If we enter the dry season, nothing can be done except patiently waiting for the mercy of institutional investors.

A month after the start of the June mini-bull rally, we finally begin to notice positive actions. New, fresh money comes into Bitcoin, and it gave the market a good pamp back to the $ 7400 price level.

Do you know what this means?

This article should not be taken as financial advice, as it represents my personal opinion. I have savings in cryptocurrency, so take everything I write with salt. Do not invest what you cannot afford to lose, and always read as much as you can about the project before investing. Never forget: with great power comes great responsibility.

When the market turns around, there are a number of signs that you can check to have available means for entering cryptocurrency. I will not dwell on historical prices, as I have already considered them, but it is worth mentioning two more key success factors:

✔️ Timing or, better yet, buying / selling at the right time;

✔️ Mood, as you need to understand market behavior in order to predict price movement.

If you master both factors, then you will have a fair chance of winning the market.

However, making the correct forecast at the wrong time, you can lose hard-earned money. Remember what happened to Michael Berry? He was absolutely right when he predicted the crisis of subprime mortgage lending, except that he thought he would start later and he would have time. This tiny miscalculation cost him capital.

Now back to what matters.

What happens to the Bitcoin price?

July 17 volume was about $ 4,242 billion. A quick rise in a couple of hours and about $ 1 billion was added to the market.

This led to an increase in the price of Bitcoin by 8%, from $ 6700 to $ 7300.

What happens to the price of Bitcoin (BTC)?

When we test some professional traders and investors, such as Alessio Rastani, Mati Greenspan or Daniel Jeffreys, we see that they not only hedge in favor of Bitcoin, but also expect a price movement like the one that just happened.

I will do my best to explain how this price action was predicted, and how you can use this knowledge for the next bull rally.

Never follow dumb-money

What happens to the price of Bitcoin (BTC)?

One of the most widespread facts is that, as a rule, traditional media channels deliver completely inaccurate cryptocurrency market forecasts. The reason is that their panels of "experts" are usually composed by people who do not understand cryptocurrency.

Of course, I have no doubt that many of these experts have certain knowledge in the field of finance. In addition, if you use this knowledge and try to apply it to various fields, such as cryptocurrency, your predictions may not be as accurate as you think.

Ignoring the underlying technological mechanics when comparing traditional financial markets and modern cryptocurrency markets is a problem that too little is taken care of.

Mixing ignorance with power is a great recipe for disaster

If you are one of those who usually listens to CNBC, Bloomberg, Reuters, etc., you can choose the wrong time to invest in Bitcoin.

The key rule of any successful investor is to never listen to the news.

Partnerships are generally bullshit (look at the many examples from the recent past), most experts are analyzed by companies, success is measured by funds raised rather than product development, utility or market reach, and last but not least, traditional news sites tend to need a larger audience, which means it's much easier to get baited news than real news. For example, “Bitcoin is just a scam.”

Want another example of why you shouldn’t follow media advice?

Shorten Bitcoin: the best advice

What happens to the price of Bitcoin (BTC)?

The image above, taken from one of the latest analyzes on YouTube by Alessio, shows the volume of CBOE futures contracts. As you can see, dumb-money was betting big to bring Bitcoin down to $ 4500 (no ads).

I’m pretty sure that recent news explaining why you should shorten Bitcoin had a little impact on this result.

Should you follow the herd or bet against? You already know the answer.

Enjoy an epic short squeeze! This is when short-term traders are destroyed by a large amount of fresh money entering the market, pushing prices back.

Another point that I would like to bring to your attention is the importance of the time axis.

What happens to the price of Bitcoin (BTC)?

If we were looking for a trigger that could help us know when a significant price move would occur, then a strategy that could be useful is the LT indicator.

I'm not saying that this technique is always accurate, but it can tell us with a high degree of certainty when a change will occur.

LT analysis takes into account price walls and when they are likely to be met, that is, given a certain amount of time, the pressure of sales or purchase orders will push the price down or up, and the LT indicator measures when both walls intersect.

What happened a few days ago was obviously a massive price that pushed prices forward, removing all Bitcoin shorts.

In a sense, when purchase orders are ordered up, someone who shorts Bitcoin is burned.

What happens to the price of Bitcoin (BTC)?

Is it any wonder the impressive 8% returns we saw last week?

I really don't think so.

If you do not remember what happened in December last year, we recall that most of the leading traders and investors warned us about the upcoming correction, which we are currently experiencing. Like any other good bubble, sometimes it needs to burst to form a newer and more massive bubble.

Now it seems that the market is gathering resources such as: people, knowledge and capital; soon the activities of the last few months will bear fruit and new implementations such as Lightning Network, Segwit, sidechains and decentralized exchanges will help drive up prices.

And I think this is just the beginning.

Keep in mind that this bullish rally is unlikely to be without problems; there will be opportunities to make small purchases, in some places, in the hope that the price will continue to rise to the level of $ 20 thousand.

What happens to the price of Bitcoin (BTC)?

Historically, ups and downs are what the market is based on and you can make money on it, so take into account as many different analyzes and indicators as possible.

As for the analysis of Alessio, when we see that the parameters of trading, both in price and along the time axis, are combined at the same moment, we look at the highest likelihood, the lowest risk trading schemes in the market.

This is because there are both price walls and temporary walls that will collide in an epic / price push.

As you can see above, the date ranges correspond exactly to what happened, since the main price boost came on 17 July.

What else will lead to an increase in the price of Bitcoin?

What happens to the price of Bitcoin (BTC)?

If you want to better understand the range of opportunities that can lead to wide price swings, it is important that you understand the actions of the major players that can drive expansion. One of these players, of course, is BlackRock.

As the world's largest asset management company, is any BlackRock cryptocurrency distribution likely to be pegged to Bitcoin (eg via BitcoinETF)? This, in turn, will lead not only to an influx of institutional investors, but probably to an insane amount of dumb-money, as I would not expect anything less than the massive hype caused by daily media updates, pushing people to buy more Bitcoins. – as we saw in December, remember?

The hypothesis is this: smart money attracts dumb money. If BlackRock finishes creating the Bitcoin ETF, I would expect a massive rally.

Does Bitcoin expect the same fate as gold?

What happens to the price of Bitcoin (BTC)?

Hope! It's not so bad!

Now, if we are willing to look at a different angle and forget about money for a second to focus on regulation and political pressure, we can see that the world is currently divided. On the one hand, we have people like Andreas Antonopous talking to the Senate explaining how cryptocurrency can make the world a better and fairer place; on the other hand, there are traditional lobbyists who put the interests of their donors before the people.

Of course, my opinion on 100% is biased, I am much more liberal. A little uncertainty would be much better than blindly following the rules to enforce the rules.

So now, I should not listen to people who disagree with me?

What happens to the price of Bitcoin (BTC)?

Well, that depends on the arguments. During one of the last SEC hearings, this guy, Mr. Brad Sherman, was extremely bearish about Bitcoin, extrapolating the same old boring conclusions that cryptocurrency is only for criminals and people who want to evade taxes.

Right. I thought we walked past this?

Interestingly, SunnyDecree posted one of their latest videos of how this guy, a US senator, despite viciously criticizing Bitcoin - the safest currency - actually accepts donations from Allied Wallet, an online digital payment business.

Do you know what is the most interesting? These guys were fined a couple of years ago for money laundering.

Double standards, Mr. Sherman!

What will happen to Bitcoin's price momentum?

We could think of bad news like the ones above, or news sites reporting idiotic things like Bitcoin is Dead, all of which could be a catalyst for people fleeing cryptocurrencies.

Of course, smart-money doesn't care about trends - because they usually set them, and dumb-money usually follows the wrong trend.

What do I think will happen? Well, now, the momentum holds, and the good news does not stop there:

I do not believe that the price of Bitcoin will decline, especially when the oversold RSI does not begin the usual correction.

I came to the conclusion that the Bitcoin rally will continue for several days or until we see less green volume, supporting the last positive price action.

Rate this article
Blockchain media